Annuity Payout Calculator
Compute the regular payout amount from a fixed annuity over a chosen period, or solve for how long a balance will last at a given payout rate.
How to use the Annuity Payout Calculator
- Enter your inputs into the Annuity Payout Calculator above.
- Results update instantly as you type — no submit button needed.
- Adjust any value to see how the result changes in real time.
The annuity payout formula
PMT = PV · r / (1 − (1 + r)^−n)
PV is the annuity balance at payout start, r is the periodic interest rate and n is the number of payout periods. The result is the fixed periodic payment that exactly exhausts the balance over n periods.
Worked example
$500,000 annuity paying out monthly over 20 years at 4% annual: PMT = 500,000 × (0.04/12) / (1 − (1.00333)^−240) ≈ $3,030/month. Total payouts: about $727,000.
Frequently asked questions
What is a life annuity?
A life annuity pays for as long as you live, regardless of how long that is. The insurance company pools the longevity risk across many annuitants.
How does period-certain work?
A period-certain annuity guarantees payments for a minimum number of years (e.g., 10 or 20) even if you die. Heirs receive the remaining guaranteed payments.
Can I outlive my payouts?
A fixed-period annuity exhausts at the end of the term. A lifetime annuity continues regardless. Choose based on whether longevity protection is a priority.